How is nominal GDP converted to real GDP?

Question

Quizplus · Accepted Answer

Nominal GDP is divided by the price index to convert it to real GDP. This is because nominal GDP is measured in current prices and includes the effect of inflation, while real GDP is measured in constant prices and adjusts for the effects of inflation. Dividing nominal GDP by the price index (which reflects changes in prices over time) allows us to remove the impact of inflation and obtain a more accurate measure of economic growth over time.

How Is Nominal GDP Converted to Real GDP